Munich Personal RePEc Archive

The long-run and short-run effects of foreign direct investment, foreign aid and remittances on economic growth in African countries

Njangang, Henri and Nembot Ndeffo, Luc and Noubissi Domguia, Edmond and Fosto Koyeu, Prevost (2018): The long-run and short-run effects of foreign direct investment, foreign aid and remittances on economic growth in African countries.

[img] PDF
MPRA_paper_89747.pdf

Download (119kB)

Abstract

This paper investigates the long-run and short-run effects of foreign direct investment (FDI), foreign aid and migrant remittances on economic growth in 36 African countries over the period 1980–2016. Empirical evidence is based on Pooled Mean Group (PMG) approach. The following findings are established. First, while there is a positive and significant long-run relationship between foreign direct investment and economic growth in Africa as a whole, the effect of remittances and foreign aid is insignificant. Second, in the short-run there is no evidence of any significant impact of FDI, remittances and foreign aid on economic growth. Third, results are still robust in the short-run when the panel is divided in three subsamples. However, in the long-run the effects of FDI, remittances and foreign aid on economic growth depend on the income level.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.